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HotForex Review

Steven Hatzakis

Steven Hatzakis | November 12th, 2019

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

HotForex is a MetaTrader-only broker offering market-maker execution across a perplexing variety of six different account types. With a slightly enhanced MetaTrader offering, HotForex provides a limited selection of tradeable products compared to leading multi-asset brokers.

  • Founded in 2010, HotForex is a MetaTrader broker. Customers have access to just over 100 securities, and limitations apply; for example, crypto CFDs are not tradeable on weekends.
  • HotForex is regulated but has only one tier-1 license, has only been operating for nine years, and overall trails Trust leaders like IG, Saxo Bank, and CMC Markets.
  • With six different account type options, pricing at HotForex varies greatly by account type. At best, HotForex's pricing is slightly better than the industry standard; however, pricing still trails low-cost leaders such as CMC Markets and FOREX.com.
  • HotForex offers the full MetaTrader suite with an optional tools package for customers called Premium Trader Tools to enhance the default experience. Compared to other top-rated MetaTrader brokers, HotForex MetaTrader offering is respectable, but not award-winning.
  • Less the addition of AutoChartist, market research is far from challenging industry leaders such as Saxo Bank and IG. Social copy trading with HotForex also failed to impress.
FeatureHotForex
Overall 3 Stars
Trust Score80
Offering of Investments 3 Stars
Commissions & Fees 4 Stars
Platform & Tools 3 Stars
Research 3.5 Stars
Mobile Trading 3 Stars
Customer Service .1 Stars
Education 3 Stars

Is HotForex Safe?

help 80
Trust Score

HotForex is considered average-risk, with an overall Trust Score of 80 out of 99. HotForex is not publicly traded and does not operate a bank. HotForex is authorised by one tier-1 regulator (high trust), three tier-2 regulators (average trust), and two tier-3 regulators (low trust). HotForex is authorised by the following tier-1 regulator: Financial Conduct Authority (FCA). Learn more about Trust Score.

Regulations Comparison

FeatureHotForex
Year Founded2010
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses1
Tier-2 Licenses3
Tier-3 Licenses2
Trust Score80

Offering of Investments

The following table summarizes the different investment products available to HotForex clients.

FeatureHotForex
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs)49
CFDs - Total Offered104
Social Trading / Copy-Trading Yes
Cryptocurrency traded as actual No
Cryptocurrency traded as CFD Yes

Commissions & Fees

HotForex offers six account types, ranging from Micro to Premium, as well as accounts with fixed spreads, and one account dedicated to copy trading. Based on the data displayed by HotForex, our best guess is that Zero and Fixed accounts are the most popular.

Comparisons: On the Zero account, typical spreads are 0.3 pips on the EUR/USD and incur a commission of roughly 0.6 pips per trade, totaling an all-in cost of 0.9 pips. On the Zero account, trading costs are lower, but margin requirements are twice as high as the Premium account, where typical spreads are 1.2 pips.

Published data: While HotForex lists typical spreads across its account types, the broker does not list a date range for the data. We'd like to see an average spread published for a given period, as it is hard to quantify a zero variable spread. However, as mentioned above, the broker does list typical spreads for its other related account offerings, as seen in the snapshot below.

Gallery

FeatureHotForex
Minimum Initial Deposit$50
Average Spread EUR/USD - Standard1.20
All-in Cost EUR/USD - Active0.90
Active Trader or VIP Discounts No

Platforms & Tools

HotForex is a MetaTrader broker that offers the entire MetaTrader suite, including both MT4 and MT5 desktop and web. The desktop version supports automated trading systems known as Experts through the MQL5 signals community.

While MetaTrader4 and MetaTrader5 come standard, HotForex does provide customers an optional suite of trader tools, called Premium Trader Tools, developed by FX Blue Labs. Highlights from the 12 tools provided in the package include Trade Terminal for advanced order execution, Connect for news, Alarm Manager for alerts, and additional technical indicators like Renko bars, pivot points, and order history.

Gallery

FeatureHotForex
Virtual Trading (Demo) Yes
Proprietary Platform No
Desktop Platform (Windows) Yes
Web Platform Yes
Social Trading / Copy-Trading Yes
MetaTrader 4 (MT4) Yes
MetaTrader 5 (MT5) Yes
cTrader No
Charting - Indicators / Studies (Total)51
Charting - Drawing Tools (Total)31
Charting - Trade From Chart Yes
Watchlists - Total Fields7
Order Type - Trailing Stop Yes

Research

HotForex provides research resources that include analysis and trading tools incorporating content from in-house staff and third-party providers. FxStreet provides forex news, and trading signals generated by automated pattern recognition are available from Autochartist. Overall, research is on par with the industry standard.

HF Copy: HotForex also launched a copy-trading platform called HF Copy, although considering it is still very new, there weren't many providers available and those that are have a limited trading history.

Gallery

FeatureHotForex
Daily Market Commentary Yes
Forex News (Top-Tier Sources) Yes
Weekly Webinars Yes
AutoChartist Yes
Trading Central (Recognia) No
Delkos Research No
Social Sentiment - Currency Pairs Yes
Economic Calendar Yes

Mobile Trading

MT4 and MT5 come standard on Android and iOS. Scoring for this category matches that of other MetaTrader-only brokers. Lastly, it's worth noting that HotForex also offers HF App, which is its proprietary mobile platform with various research and trading tools and calculators, although it does not permit direct trading.

Gallery

FeatureHotForex
Android App Yes
Apple iOS App Yes
Trading - Forex Yes
Trading - CFDs Yes
Alerts - Basic Fields Yes
Watch List Yes
Watch List Syncing No
Charting - Indicators / Studies30
Charting - Draw Trend Lines Yes
Charting - Trend Lines Moveable No
Charting - Multiple Time Frames Yes
Charting - Drawings Autosave No
Forex Calendar No

Final Thoughts

HotForex is suitable for traders looking for a MetaTrader only broker that has a handful of additional upgrades from the standard, default setup. While the broker offers a small range of markets compared to top multi-asset brokers, HotForex continues to increment its offering with minor improvements across the board, helping to balance its otherwise mixed offering.

About HotForex

HotForex is a MetaTrader-only broker offering market-maker execution across a mixed account offering where commissions, spreads, and margin rates vary considerably.

Founded in 2010, HotForex operates as a unified brand of the HF Markets Group and maintains a regulatory status in Europe via Cyprus under its HF Markets (Europe) Ltd entity. It is also represented in several emerging regulatory hubs such as South Africa, Seychelles, Mauritius, and St. Vincent and The Grenadines.

2019 Review Methodology

For our 2019 Forex Broker Review we assessed, rated, and ranked 28 international forex brokers over a six month time period. Each broker was graded on 81 different variables and, in total, over 60,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex Risk Disclaimer

"There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." Learn more.


Steven Hatzakis

About the author: Steven Hatzakis is the Global Director of Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. All data was obtained from a published web site as of 02/18/2019 and is believed to be accurate, but is not guaranteed. The ForexBrokers.com staff is constantly working with its online broker representatives to obtain the latest data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page.

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